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Bangladesh Bank has declared four non-bank financial institutions (NBFIs) non-viable as part of efforts to restore good governance and accountability in the financial sector and protect the interests of depositors and other creditors.
The central bank made the announcement in a press release on Sunday.
The four institutions are Aviva Finance Limited, Fareast Finance and Investment Limited, FAS Finance and Investment Limited, and International Leasing and Financial Services Limited.
Bangladesh Bank said action against the institutions was taken under the Bank Resolution Act, 2026. Administrators and associate administrators have been appointed to begin the resolution process and oversee the institutions’ operations.
The central bank said the move aims to restore discipline and good governance in the financial sector while rebuilding public confidence in the financial system.
Following a decision by Bangladesh Bank’s board, the financial strength and prospects of the four institutions were reviewed. The assessment found serious weaknesses in their financial conditions, prompting the central bank to declare them non-viable and initiate resolution proceedings.
According to Bangladesh Bank, the institutions have substantial capital shortfalls and high levels of classified loans and investments, creating significant risks to the quality of their assets.
Their failure to maintain adequate liquidity and declining earning capacity were also identified as major weaknesses. The central bank also considered the institutions’ inability to meet their obligations to depositors and other creditors.
Bangladesh Bank said it had therefore decided to place the institutions under the resolution process instead of allowing them to continue under their existing management.
Under the process, necessary measures will be taken concerning their assets, liabilities, management and financial operations.
The administrators and associate administrators appointed by Bangladesh Bank will oversee the institutions’ administration, management and resolution activities. Their operations will now be conducted under the direct supervision of the central bank.
Bangladesh Bank said the resolution process would include reviewing the institutions’ financial conditions, protecting the interests of creditors and determining appropriate measures for their future.
The central bank expects the move to help restore discipline and good governance in the financial sector. It also hopes the initiative will strengthen protection for depositors and other creditors and contribute to restoring public confidence in the country’s financial system.